1. What is the effective interest rate if your investment earns 3.0% compounded semiannually?

2. What is the effective interest rate, if your investment earns 3.0% compounded daily?

3. David received an inheritance of $500,000. He wants to withdraw equal periodic payments at the beginning of each month for the next 7 years. He expects to earn 5.5% annual interest, compounded monthly on his investments. How much can he receive each month?

4.Grace wants to give her daughter $250,000 in 7 years to start her own business. She currently has $50,000 invested and earmarked for this goal. How much more should she invest at the end of each month with an annual interest rate of 8% to have $250,000 in 7 years?

5. What would you be willing to pay for yearend annuity payments of $50,000 for the next 4 years, if you can earn 11% return on your investment?

6..If you would like to purchase a new home for $200,000 with 4.3% interest rate for 30 years, what is your monthly mortgage payment?

7.. What interest rate is required to turn a present value of $3,000 to a future value of $5,000 in 5 years compounded quarterly?

8.If you want to accumulate $60,000, how many years will it take if you save $1,000 per quarter and your investment account pays 7% compounded quarterly.